How much does a heat pump cost in 2026?
The total cost of installing an air source heat pump in a typical UK home ranges from £7,000 to £13,000 before the government grant. After the £7,500 Boiler Upgrade Scheme grant, most homeowners pay between £500 and £5,500 out of pocket. Ground source heat pumps cost more (typically £15,000 to £35,000 before grants) but deliver higher efficiency. Read our complete guide to the Boiler Upgrade Scheme for eligibility details.
The exact cost depends on your property size, how well insulated your home is, whether your radiators need upgrading, and the complexity of the installation. Our calculator uses data from the Energy Saving Trust and current Ofgem energy prices to give you a realistic estimate.
Heat pump running costs vs gas boiler
Heat pumps are more efficient than gas boilers because they transfer heat rather than generating it by burning fuel. A typical air source heat pump achieves a coefficient of performance (COP) of 2.8 to 3.5, meaning it produces 2.8 to 3.5 units of heat for every unit of electricity consumed. For a detailed breakdown, read our guide to heat pump running costs.
However, electricity costs more per unit than gas. At current Ofgem rates (24.5p/kWh electricity vs 6.76p/kWh gas as of Q1 2026), a heat pump with a COP of 3.0 costs roughly 8.2p per kWh of heat, compared to around 7.5p per kWh from a gas boiler operating at 90% efficiency. The savings are modest for gas users but substantial for anyone on oil, LPG, or electric heating. See our boiler vs heat pump comparison for the full 15-year analysis.
Is a heat pump worth it?
For homes currently heated by oil or LPG, a heat pump almost always saves money from year one. For homes on mains gas, the financial case is tighter. The savings come primarily from the government grant reducing the upfront cost, and from the expectation that gas prices will rise relative to electricity as the UK decarbonises. The environmental case is clear: a heat pump in a well-insulated home typically reduces CO2 emissions by 50% to 70% compared to a gas boiler.
The best candidates for heat pumps are homes with good insulation, adequate space for the outdoor unit, and a willingness to accept slightly lower flow temperatures (which means larger radiators may be needed in some rooms). Combining a heat pump with solar panels further reduces running costs.
Frequently asked questions
How much does a heat pump cost in the UK in 2026?
An air source heat pump costs £7,000 to £13,000 before the £7,500 BUS grant. After the grant, most homeowners pay £500 to £5,500. Use our calculator above for a personalised estimate.
How much is the heat pump grant in 2026?
The Boiler Upgrade Scheme provides £7,500 for an air source heat pump and £6,000 for a ground source heat pump. Your MCS-certified installer applies on your behalf. Check your eligibility.
Are heat pumps cheaper to run than gas boilers?
In a well-insulated home, heat pump running costs are comparable to or slightly lower than gas. The breakeven COP is around 3.3 at current energy prices. Read our full running costs guide for detailed figures by property type.
Is a heat pump worth it in the UK?
For most homeowners, yes. The £7,500 grant makes the upfront cost competitive with a new gas boiler. Running costs are comparable or lower in well-insulated homes. Heat pumps also improve your EPC rating by 10 to 15 points and future-proof your home. See our full comparison.